Shock Therapy at Deutsche Bahn: Overseas Exit, Asset Sales and Job Cuts

Deutsche Bahn is entering a period of profound upheaval. Under its new CEO Evelyn Palla, the German rail group is preparing a far-reaching retreat from non-European markets, the sale of profitable international subsidiaries, and sweeping cost-cutting measures across the organisation.

According to the German business daily Handelsblatt, the decision comes directly from the new leadership of Deutsche Bahn, which is accelerating a fundamental restructuring of the group. DB International Operations, responsible for passenger rail operations outside Europe, is now being prepared for sale. The move marks a sharp strategic shift under Evelyn Palla, who took office earlier this year.

Während der Zugbetrieb in Deutschland unter Druck steht, wackelt ausgerechnet das ertragreiche außereuropäische Geschäft der Bahn. Firmeninsider rechnen mit dem Verkauf. //t.co/aeRPiBrZoT

— Handelsblatt (@handelsblatt) January 26, 2026

Since 2023, Deutsche Bahn has operated passenger rail services in countries including Egypt, India and Uruguay. Together with its subsidiary DB Engineering & Consulting, the group is also active in Qatar, Toronto in Canada and Abu Dhabi in the United Arab Emirates. DB International Operations generated around €1 billion in turnover last year, with profits of approximately €35 million. DB Engineering & Consulting employs around 8,500 people and remains active in transport planning and engineering projects both outside Europe and within Germanyand the EU.

A senior manager familiar with the situation told Handelsblatt that the current DB leadership no longer sees strategic value in overseas rail operations. Support from the German Federal Ministry of Transport has also weakened, particularly where approvals are required for establishing or maintaining foreign subsidiaries.

Palla Launches Deep Restructuring of Deutsche Bahn

The retreat from international markets is accompanied by an aggressive internal restructuring. Personnel reductions are already under way at DB’s Berlin headquarters, where at least 30% of the current 3,500 management positions are expected to be eliminated. Affected employees will be offered individual career counselling and support in finding new roles outside the group.

Werner Grätzer, Chairman of the Supervisory Board, confirmed that the restructuring has full backing from the board and will proceed at pace. In an interview with Table.Briefings, he said the group has already reduced the size of its executive board and is now reviewing the necessity of management roles throughout the organisation. One entire management layer between the executive board and divisional directors is set to be removed in order to speed up decision-making and simplify governance.

Grätzer emphasised that Palla brings her restructuring approach from her time at DB Regio, where she gained a reputation for addressing operational problems directly rather than masking them. The group’s primary objective, he said, remains the rapid and systematic modernisation of infrastructure, which is seen as a prerequisite for achieving a punctuality rate of 70% by 2029.

Focus Shifts to Stations, Infrastructure, and Stable Financing

Alongside structural reforms, Deutsche Bahn is launching an immediate programme to improve safety, cleanliness and maintenance at railway stations. The initiative will begin at 25 of the country’s largest stations and continue throughout the year, supported by newly established mobile maintenance teams tasked with repairs, graffiti removal and general upkeep.

Grätzer also indicated that DB’s financial results for 2025 may reach break-even, marking a potential end to years of losses. Looking ahead, the group is considering a multi-year, binding funding framework for rail infrastructure, designed to reduce dependence on annual federal budgets. The model would mirror long-term financing mechanisms used in Austria and Switzerland, providing Deutsche Bahn with greater planning certainty and long-term investment stability through a dedicated infrastructure fund.